Capital Gains Tax treatment of UK residential property (as of May 2014)
| Form of ownership | Tax at entity level | Tax on individual if UK resident | Tax on non-resident individual |
| Direct ownership by individual | N/A | CGT on disposal of second home or rental property | No UK CGT |
| Trust | UK trustees pay CGT at 28{e68217344b855fcd608ed2c4c41f83644da7cd41ea524fbfa2ad06c632d3255d} on disposal of beneficiary’s second home or rental property | Anti-avoidance rules charge UK resident domiciled settlors to CGT on disposals by offshore settlor interested trusts of beneficiary’s second home or rental property & in other cases UK resident beneficiaries on capital payments | No UK CGT |
| Company | UK company – corporation tax; Foreign co – no CGT. Both subject to ATED-related CGT on £2m+ residential property | CGT on disposal of shares. Anti-avoidance rules attribute gains of offshore companies to UK resident participators | No UK CGT, although for non-resident landlords there is income tax on rental income |
| UK collective investment scheme | No corporation tax on gains, except for non-exempt unauthorised unit trusts and qualified investment schemes that fail GDO test | Corporation tax or CGT on disposal of units (or on disposal of property if CIS is a partnership) | No UK CGT |
| Offshore collective investment scheme | No corporation tax or CGT (except ATED-related CGT on £2m+ residential property) | Corporation tax or CGT on disposal of units in a fund (or on disposal of property if CIS is a partnership) | No UK CGT |
| REIT | No corporation tax or CGT on disposal of UK property used in the property rental business (both UK & foreign REITs) | Shareholders in a REIT pay corporation tax or CGT on disposal of shares rather than property | No UK CGT, although there is a withholding tax as for rental income if capital gains are distributed |